What should you consider when selling internationally?
Many Hexspoor customers hold their stock centrally in the Netherlands and ship from there to customers in different countries. When you enter new sales markets, it is not only your logistics that may change. VAT, customs formalities and local obligations can change as well.
Which rules apply to your organisation depends on several factors, including where your business is established, where your customer is located and whether you sell B2B or B2C. It is therefore important to assess the consequences before entering a new market.
What should you consider?
Several factors determine how international sales are treated. Where is your business established? From which country is the order shipped? Where is the customer located? And are you selling to a business or to a consumer?
For many Hexspoor customers, stock is held in the Netherlands and orders are shipped internationally from there. Even so, the tax treatment can differ from one sales market to another.
A sale to a consumer in Germany, for example, is treated differently from a sale to a German business. It also makes a difference whether you sell within or outside the EU.
What changes when you sell across borders?
Different VAT rules apply within the EU to B2B and B2C sales.
Do you sell from the Netherlands to consumers in other EU countries? In that case, VAT may be due in the country of destination. For many of these sales, the One Stop Shop can help you declare and pay foreign VAT centrally.
Different rules apply to B2B supplies within the EU. It is therefore important to know what type of customer is involved and how the goods are moving.
Do you sell to countries outside the EU? You will also have to deal with customs formalities. When goods are exported from the Netherlands, you must be able to demonstrate that they have left the EU. In the destination country, import VAT, customs duties and other local obligations may apply.
What does this mean for you?
Even when your fulfilment is organised centrally through Hexspoor in the Netherlands, tax obligations can differ by sales country.
The country of destination and the type of customer are particularly important for VAT treatment. If you sell outside the EU, it should also be clear who is responsible for the import and which information is required for the customs declaration.
Brands established outside the EU that hold stock in the Netherlands may also have Dutch and European VAT obligations. If goods are first imported into the Netherlands from a non-EU country, an import declaration must be submitted and import VAT is generally due.
Do you sell from your stock in the Netherlands to consumers in multiple EU countries? Read our knowledge article about the One Stop Shop.
What can you do now?
Map out your goods flow for each sales market. Look at the country from which you ship, where your customer is located and whether you sell B2B or B2C.
Then check with your tax adviser which VAT obligations apply. Do you sell outside the EU? Also define who is responsible for the import and which customs and product data are required.
Ideally, do this before entering a new market. This helps ensure that your administration, webshop and logistics processes are aligned from the start.
Are you planning to hold stock in another EU country in addition to your stock at Hexspoor? Have the additional VAT obligations assessed in advance. Moving your own stock to another EU country can result in local VAT registration and reporting requirements.
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Selling internationally requires close alignment between sales, administration and fulfilment. Hexspoor supports you with the operational setup of your international order flows from the Netherlands. For tax advice and local tax obligations, we recommend involving your own tax adviser.
Are you planning to enter a new market? Discuss your plans with your dedicated contact at Hexspoor in good time.